The Economic Survey 2026 noted that receipts from asset and equity monetisation are an important component of the Government’s non-debt capital receipts. During FY26 (up to December 31, 2025), disinvestment activity remained focussed on market-based transactions aligned with valuation discipline and minimum public shareholding norms.

Three OFS transactions were undertaken: Mazagon Dock Shipbuilders Limited, Bank of Maharashtra, and Indian Overseas Bank. These OFS transactions together mobilised around ₹7,717.02 crore. In addition, remittances from SUUTI totalled approximately ₹1,051 crore during the year. InvIT-based monetisation yielded ₹18,837 crore. Strategic disinvestment has progressed in a calibrated manner over recent years.

 Since 2016, in-principle approval has been accorded for strategic disinvestment of 36 CPSEs, of which 13 transactions have been completed, with the remainder at various stages of implementation. During FY26, approvals were also accorded for stake dilution or exit from select joint ventures, including NTPC’s divestment from Utility Powertech Limited. “These actions were complemented by governance reforms that empowered CPSE Boards to undertake the closure, merger, or disinvestment of subsidiaries,” the Survey pointed.

Changes in government shareholding patterns

“Going forward, receipts from equity monetisation can be strengthened by selectively reducing Government equity in certain CPSEs beyond the minimum public shareholding norms, guided by market conditions and enterprise-specific factors. Currently, in about 30% of listed CPSEs, Government shareholding is already below 60%, limiting further disinvestment through OFS, as it is stipulated in the Companies Act that a ‘government company’ must have at least 51% of its stake held by the central or state government. Since effective control requires only about a 26% stake, the Government could consider amending the definition of “Government Company” under the Companies Act, limited to listed entities, to allow them to remain as government companies with a minimum of 26% ownership, thereby retaining special resolution rights, while enabling the government to monetise its stake,” the Survey stated.

 Alternatively, if the objective is eventual privatisation, the Government could continue phased OFS below 51% and even towards full exit, without changing the legal definition of “government company”. This would enable CPSEs to function post-disinvestment as professionally managed entities with dispersed ownership, clear governance standards, and transparent succession frameworks.

A portion of disinvestment receipts could also be earmarked for strategic investments in emerging technology and innovation-driven companies through professionally managed platforms such as the National Investment and Infrastructure Fund (NIIF), thereby recycling public capital toward future growth sectors. “This will also ensure a steady stream of disinvestment receipts into the future,” the Survey said.